Tax cuts today for millions of workers

The tax-free personal allowance will rise to £11,850 from todaySTEFAN WERMUTH/REUTERS

Millions will have their income tax cut under government changes that come into effect today.

The tax-free personal allowance is rising from £11,500 to £11,850, meaning that a typical basic-rate taxpayer will be about £70 richer a year. It is one of the many previously announced changes that take effect today.

The national living wage is increasing by 4.4 per cent from £7.50 an hour to £7.83 an hour. For those aged below 25 they will still be paid the national minimum wage.

Fuel duty remains frozen for the eighth year at 57.95 pence a litre after a successful campaign by backbench Conservatives, while the state pension is rising by 3 per cent, meaning an increase of £3.65 a week.